A growing share of companies recognize the benefits of digitally mediated credit procurement

Krea, the financing service for small and medium-sized enterprises (SME), has reached a milestone of 1 billion SEK in facilitated financing volume. Krea's growth rate is accelerating, with its facilitated volume more than doubling compared with 2021. The recent increase is the result of more companies recognizing the benefits of addressing their financing needs through digital procurement, enabling seamless access to credit with best possible terms. Krea is now setting its course for international expansion and has recently launched its platform in neighboring Finland operating as Kredita.

Small and medium-sized enterprises account for four out of five new jobs in Sweden, still more than 50% of Swedish business owners struggle to access external financing for new investments and growth. Krea was founded in 2018 with the mission of making it easier for small and medium-sized enterprises to access the right financing on the best possible terms.

Initially, Krea focused solely on comparing business loans and gradually expanded the platform's capabilities through adding real estate financing and invoice purchasing. Today, Krea's service has evolved from being a leading loan comparison platform into a full-fledged financing service that includes comprehensive advisory support. Financing volumes have also increased, since Krea now supports small and medium-sized enterprises with financing needs of up to 100 million SEK.

Better terms are achieved by comparing different financing options

Through using Krea's procurement platform, small and medium-sized enterprises are able to provide a comprehensive description of their needs and can easily supplement their application with supporting financial documents. At the same time, they gain access to Krea's network of more than 30 banks and other lenders.

Via Krea's access to the largest network of banks and lenders through a single application, small and medium-sized enterprises are more likely to find an attractive financing offer that meets their requirements in terms of interest rates, collateral, and other conditions. The transparency of Krea's marketplace, together with the fact that Krea continues to expand its network of banks and lenders, results in larger loan amounts and increasingly attractive interest rates. The median interest rate obtained by companies on Krea's platform has decreased by 20%, while the median approved loan amount has increased by 30% since 2019.

In addition to providing an easy path to financing with the most attractive terms, Krea's platform also addresses the "access problem" faced by small and medium-sized enterprises. Because each lender focuses on specific segments and applies distinct criteria when onboarding customers (such as creditworthiness or profitability), access to attractive financing depends on connecting with the right bank or lender. Through using Krea, small and medium-sized enterprises achieved an average approval rate of over 70%, that is twice as high as that of the single lender with the highest approval rate within Krea's network. Krea also offers an unique tool that enables small and medium-sized enterprises to strengthen their applications with updated financial statements, giving lenders a clearer view of the company's most recent performance. Adding more data reduces risk for lenders and results in higher approval rates for applications submitted by small and medium-sized enterprises.

The road ahead

After successfully establishing a strong market position in Sweden, Krea has recently launched its platform in the Finnish market under the brand name Kredita. Krea continues to invest in its technology and organization and currently has several open positions.